Sole Trader Equity Accounts
Just signed up. Sole Trader structure. At sign-up I was shown a very short list of available company types and have included a picture of them below. "Sole Trader" was not available. I selected "Individual". When the company was created I was given a default chart of accounts that, in part, includes the equity structure that I have also picture below.
I would have expected an "Owners Contribution" account and an "Owners Drawings" account, instead I am shown "Personal Income" and "Personal Expenses".
- Are these account names equivalent? That is, can I treat "Personal Income" as "Owners Contribution" and "Personal Expenses" as "Owners Drawings"?
- Why have these names been used? I am not familar with this sort of naming convention for these accounts?
- The two accounts are linked (as can be seen in my image below) so I cannot simply delete them and add new accounts. But when I use the "Edit Linked Accounts" button on the Chart of Accounts page these equity accounts do not appear anywhere as being linked to anything. So what are they linked to? Can I unlink and delete them?
- If I simply rename them (easy enough) will they still be used by the system in some other way that I am not expecting as a result of their being linked to something?
